UK Treasury Targets £655m with 5% Machine Games Duty Hike

HM Treasury has projected that a five-percentage-point rise in Machine Games Duty (MGD) will generate £655 million over a five-year period. The increase, confirmed in a government publication released this morning, marks the latest adjustment to the tax levied on gaming machines in the UK.

The decision was accompanied by a set of policy considerations that the Treasury said underpinned the tax change. While the document outlines the rationale for the 5% rate increase, it also signals that the broader gambling sector remains under review for potential additional tax measures.

Industry observers note that the MGD hike is part of a wider fiscal strategy aimed at extracting more revenue from gambling activities. The Treasury’s projections assume a steady five-year revenue stream, though the exact impact on operators and machine availability has yet to be detailed.

The publication of the government’s considerations provides some transparency around the decision-making process, but it stops short of ruling out further tax increases on other forms of gambling. This leaves the sector exposed to possible future levies beyond the machines targeted by the current change.